Under AMF’s vision, Mexico’s railways become the backbone of resilient industrial growth
As vehicle production and exports surge, Mexico’s rail network is working to expand capacity, modernise infrastructure and strengthen cross-border links – with the Mexican Railroad Association (AMF) leading efforts to turn rail into a strategic pillar of automotive competitiveness.
Mexico’s automotive industry has grown about 30% in five years, producing nearly 4 million vehicles in 2024, with another 2.7% rise expected in 2025. That growth, together with higher imports and stronger domestic sales, is exposing capacity limits across road and port networks and driving OEMs to re-evaluate how they move freight.
With the sector under pressure to move vehicles and parts faster and further, Mtra. Vianey De la Mora García, CEO of the Mexican Railroad Association (AMF), tells Automotive Logistics ahead of the 2025 Automotive Logistics & Supply Chain Mexico conference that rail is not only seen “as a transporter of goods, but as a strategic partner in industrial competitiveness.”
“Rail connects suppliers, assembly plants and export terminals with efficiency and scale that no other mode can match,” De la Mora says, adding that its role as “the backbone of cross-border logistics” will only grow as production in Mexico expands.
Mexico is in what De la Mora calls a “historic phase of investment” in rail, as the country aims to modernise key corridors linking major ports and the US border. Projects underway include upgrades to lines from the Bajío region – “the heart of Mexico’s automotive production,” De la Mora describes – to major Pacific and Gulf ports (Veracruz, Manzanillo and Lázaro Cárdenas), as well as the expansion of cross-border rail routes through Nuevo Laredo and Coahuila.
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“These investments are increasing both capacity and operational reliability, reducing congestion and transit times for automotive parts and finished vehicles, and strengthening Mexico’s role as a competitive and connected logistics hub in North America,” De la Mora explains.
For example, port expansion at Veracruz – connected to rail by both FerroSur and Canadian Pacific Kansas City (CPKC) – has raised static storage capacity to approximately 53,000 vehicles, a roughly 56% increase since 2019. Yet port throughout are only as strong as its inland transport links. In practice, that means continued investment in rail infrastructure is critical for Mexico’s ports to fully leverage this growth.
De la Mora stresses that investment in rail infrastructure must be matched by spending on assets and technology. Mexican rail operators are adding a new fleet of autoracks and intermodal equipment, and introducing digital fleet-management systems to improve utilisation. They are also collaborating closely with OEMs, manufacturers and leasing companies to forecast demand and align railcar capacity with production cycles. “The industry is fully aware that railcar availability and modernisation are critical to sustaining the automotive sector’s growth,” De la Mora says.
The goal is to avoid the bottlenecks seen in 2023, when shortages forced some automakers to move vehicles by trucks. Honda’s head of export sales and CBU logistics in Mexico described that period as “a total mess,” at the Automotive Logistics 2024 Mexico conference, after losing thousands of rail spots and turning to flatbeds for shipments. De la Mora says such disruptions should become a thing of the past as new wagons and autoracks enter service.
Seamless cross-border integration
A defining strength of North American automotive logistics is integration across borders, and Mexican rail is reinforcing this. “The North American rail system is one of the most integrated in the world, and Mexico is further strengthening that integration,” De la Mora says. The AMF is working closely with government authorities to optimise cross-border interoperability as well as harmonise safety regulations and custom standards with rail networks in the US and Canada. Key initiatives include upgrading border crossing infrastructure, expanding data-sharing between rail operators, and enhancing intermodal terminals to streamline transfers between rail, road and ports.
Critically, the AMF is coordinating with its US counterpart, the Association of American Railroads (AAR), on regulatory alignment, digital integration and joint infrastructure projects, “with the goal of improving trilateral logistics performance across North America,” De la Mora explains.
OEMs and carriers are already feeling the benefits of improved cross-border rail links. Schneider National, for example, has expanded in Mexico and is partnering with CPKC to handle rising US-Mexico intermodal demand tied to localisation. At Automotive Logistics’ September flagship event in Detroit, speakers noted rail is playing a significantly larger role in cross-border shipments, with Nissan’s director of finished vehicle logistics indicating that earlier rail supply issues into Mexico had been resolved, even as interoperability within Mexico continues to need work.
On the rail side, CPKC’s Wylie (Dallas) vehicle compound – part of a $275m Chicago-Laredo corridor upgrade – supports a closed-loop Canada-US-Mexico service aimed at shifting more finished vehicles from road to rail. And with the new CPKC-CSX corridor linking Mexico, Texas and southeast US, stakeholders expect faster transits and added capacity to key OEM hubs.
These developments reinforce De la Mora’s point that intermodal strategies and data-driven collaboration are now essential. Rail’s integration of “digitalisation, predictive analytics and multimodal connectivity [will] strengthen resilience across the entire automotive ecosystem,” De la Mora says.
Security, reliability and resilience
Security of high-value automotive freight remains a top concern, one that rail, paradoxically, can help mitigate when managed effectively. De la Mora says the industry has rolled out integrated security programmes along key corridors “that combine technology, coordination with authorities and operational discipline.” This includes real-time GPS tracking, surveillance systems and data analytics to detect and prevent theft or vandalism, backed by coordination with local authorities and the Rail Transport Regulatory Agency (ARTF) through the AMF to protect trains and yards. The AMF also promotes predictive monitoring and information-sharing between carriers and customers to turn vulnerability into visibility.
The focus on security also reflects lessons from the past. A 2017 Automotive Logistics report warned that Mexico’s growing rail volumes had left shipments “at disadvantage” because of equipment shortages and risks of “theft, vandalism and drug smuggling.” With components and finished vehicles among some of the country’s highest-value cargo, such threats once undermined just-in-time supply chains. Today, executives expressed that conditions have improved, with OEMs such as Honda and Nissan in North America once again moving their exports by rail.
Driving greener, smarter logistics
Sustainability is another advantage of rail. “Rail is, by nature, the most efficient and sustainable mode of land transportation,” De la Mora says, noting that trains emit far less CO₂ and pollutants per ton-kilometre than road freight, and as such “positions the rail sector as a key contributor to Mexico’s and North America’s sustainability goals.”
“To maximise its environmental and operational potential, we are encouraging more products and more users to shift to rail, leveraging its capacity for long-haul freight while relying on road transport for first and last-mile delivery,” she adds.
Through AMF, the sector is also promoting intermodal transport as a strategic complement to rail operations – a policy-driven effort to align logistics efficiency with Mexico’s sustainability goals.
OEMs are also showing interest in these efforts. VW Group Logistics’ former head of transport networks noted during a Red Sofa interview that the company is using rail and digital twins to boost sustainable operations in US and Mexico.
A modern rail future
De la Mora’s vision of a modern, connected rail network is taking shape. “This intermodal approach strengthens supply chain efficiency, reduces emissions and aligns the logistics sector with broader climate and sustainability goals set by both government and industry.”
However, challenges remain. As rail capacity expands and freight volumes continue to climb, collaboration will be key. OEMs must work closely with suppliers to plan shipments and invest in rail-ready packaging and terminals, while policymakers must keep supporting corridor and security upgrades. De la Mora believes that, if aligned, these efforts will allow Mexico’s railways to anchor a more resilient and efficient cross-border automotive network – one sustained by close cooperation among industry, government and logistics partners, and positioned as a strategic pillar of North American competitiveness.
